USA - TEXAS Law and Practice Contributed by: Brad Holdbrook, Mary Mendoza, Michael Coleman and James Barnett, Haynes and Boone, LLP
1. General 1.1 Main Sources of Law
B office spaces. The return-to-work movement has helped stabilise this sector. Economic and Policy Influences The market faces potential pressures from high inflation and interest rates, influencing invest - ment and refinancing activities across real estate sectors. The Texas legislature passed an act to cut property taxes resulting in a projection of over USD18 billion saved by taxpayers, aiming to keep home ownership attainable and sustain - able. 1.3 Proposals for Reform Recent proposals for reform in Texas’s real estate sector have focused on providing tax relief to homeowners and businesses. The Texas Legis - lature passed an act to cut property taxes result - ing in a projection of over USD18 billion saved by taxpayers, aiming to keep home ownership attainable and sustainable. Key components of the reform include: • a homestead exemption to more than double the current exemption, aiming to lower the taxable value of homes and thereby reduce property taxes for homeowners; • a temporary, heightened appraisal cap for commercial, mineral, and residential proper - ties not otherwise eligible for a homestead exemption, intended to limit the annual tax - able value increase for the next three years, with the programme slated to end in 2026 unless extended; and • franchise tax exemptions are part of the package, intending to substantially increase the revenue threshold for businesses required to pay franchise tax.
In Texas, the main sources of real estate law include state statutes, case law (ie, court deci - sions), and administrative regulations. Key stat - utes include the Texas Property Code, which addresses a wide range of property issues including ownership, land use, and landlord-ten - ant relationships. These laws are supplemented by common law principles that have evolved through case law over time. Additionally, Texas real estate practices are influenced by federal laws in areas such as fair housing, and financ - ing and federal and state laws on environmental regulation. Local ordinances also play a signifi - cant role, particularly in zoning, building codes, and property taxes. 1.2 Main Market Trends and Deals The Texas commercial real estate market in 2024 has demonstrated a mix of resilience and chal - lenges influenced by various economic factors and regional differences. Market Stability and Performance The market has shown stability, particularly in industrial and multi-family properties. Indus - trial real estate remains robust, supported by e-commerce demand, with significant construc - tion activities, especially in the Dallas-Fort Worth area. This region saw about 67 million square feet of industrial properties under construction, indicating a strong market with stable rental rates and land prices. Office Space The office market presents mixed signals with a general trend towards stabilisation. North Tex - as, in particular, shows resilience with a healthy pace of leasing, especially in smaller and Class
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